Methode Electronics (NYSE:MEI) Stock Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• Methode Electronics stock price surpassed its 200-day moving average on Monday, reaching a peak of $8.37 before closing at $8.02.
• Analysts have mixed opinions on the stock, with one buy rating, one hold rating, and one sell rating, resulting in an average price target of $11.25.
• The company reported a quarterly earnings per share (EPS) of ($0.22), exceeding the consensus estimate, while also cutting its dividend, showing a payout ratio of -18.06%.

Shares of Methode Electronics, Inc. (NYSE:MEI - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $7.38 and traded as high as $8.37. Methode Electronics shares last traded at $8.02, with a volume of 343,638 shares changing hands.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Robert W. Baird lifted their price objective on Methode Electronics from $7.00 to $8.50 and gave the company a "neutral" rating in a research note on Thursday, September 11th. Wall Street Zen raised shares of Methode Electronics from a "sell" rating to a "hold" rating in a research report on Saturday, August 30th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Methode Electronics in a research report on Saturday, September 27th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $11.25.

Methode Electronics Trading Down 1.6%

The firm has a market capitalization of $282.36 million, a price-to-earnings ratio of -5.17 and a beta of 1.09. The business's 50-day moving average price is $7.34 and its 200 day moving average price is $7.38. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.50 and a quick ratio of 1.63.

Methode Electronics (NYSE:MEI - Get Free Report) last released its quarterly earnings results on Tuesday, September 9th. The electronics maker reported ($0.22) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.40) by $0.18. Methode Electronics had a negative net margin of 5.30% and a negative return on equity of 5.27%. The firm had revenue of $240.50 million for the quarter, compared to the consensus estimate of $224.57 million. During the same quarter in the previous year, the firm posted ($0.31) EPS. Methode Electronics has set its FY 2026 guidance at EPS. On average, equities analysts forecast that Methode Electronics, Inc. will post -0.4 earnings per share for the current fiscal year.

Methode Electronics Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 1st. Investors of record on Monday, July 21st were issued a $0.07 dividend. The ex-dividend date of this dividend was Monday, July 21st. This represents a $0.28 dividend on an annualized basis and a yield of 3.5%. Methode Electronics's dividend payout ratio is currently -18.06%.

Institutional Investors Weigh In On Methode Electronics

Hedge funds and other institutional investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC boosted its stake in shares of Methode Electronics by 1,027.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,089 shares of the electronics maker's stock valued at $29,000 after buying an additional 2,815 shares during the last quarter. Virtus Advisers LLC acquired a new stake in Methode Electronics in the first quarter valued at $30,000. GAMMA Investing LLC boosted its stake in Methode Electronics by 1,817.4% during the 1st quarter. GAMMA Investing LLC now owns 7,056 shares of the electronics maker's stock valued at $45,000 after acquiring an additional 6,688 shares during the last quarter. Aigen Investment Management LP acquired a new position in Methode Electronics during the 1st quarter worth $73,000. Finally, Cerity Partners LLC acquired a new position in Methode Electronics during the 1st quarter worth $79,000. 95.49% of the stock is currently owned by hedge funds and other institutional investors.

About Methode Electronics

Methode Electronics, Inc designs, engineers, and produces mechatronic products worldwide. It operates through four segments: Automotive, Industrial, Interface, and Medical. The Automotive segment supplies electronic and electro-mechanical devices, and related products to automobile original equipment manufacturers directly or through their tiered suppliers.

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